“When should I quit my healthcare job for private practice?” is the question Dr. Kelly Alhooie hears more than almost any other.
Most providers either set the bar so high they never quit their healthcare job for private practice — or they quit too early and spend their first year in financial panic. Neither is the answer.
If you are thinking about when to quit your healthcare job for private practice, this guide gives you the specific numbers, the clear calculation, and the honest framework for making this decision from a position of strength.
The Three Numbers You Need Before You Quit Your Healthcare Job for Private Practice
Before you quit your healthcare job for private practice, you need three numbers clearly defined:
- Your Monthly Living Expenses — everything it costs to sustain your life
- Your Monthly Business Expenses — what it costs to run your practice
- Your Leave Number — the monthly practice revenue that makes it safe to quit your healthcare job for private practice
Most providers who quit their healthcare job for private practice prematurely are missing number three. They have not defined it — so they never know when they have actually hit it.
Calculating Your Leave Number Before You Quit Your Healthcare Job for Private Practice
Your Leave Number is the monthly revenue your practice needs to generate before you quit your healthcare job for private practice.
Here is the formula:
Leave Number = (Monthly Living Expenses + Monthly Business Expenses) x 1.25
The 1.25 multiplier covers self-employment taxes and a buffer for unexpected costs.
Example:
- Monthly personal expenses: $5,000
- Monthly business expenses: $1,000
- Total: $6,000
- Leave Number: $7,500/month
Once your practice generates $7,500/month for three consecutive months, you are financially ready to quit your healthcare job for private practice.
The Savings Runway You Need to Quit Your Healthcare Job for Private Practice
Even after hitting your Leave Number, you still need savings before you quit your healthcare job for private practice.
The standard recommendation: 3 months of personal living expenses in the bank.
This runway means that when you quit your healthcare job for private practice, a slower-than-expected first month does not create a crisis. It just creates a problem to solve.
The Red Flags That Mean You Are Not Ready Yet
Do not quit your healthcare job for private practice if:
- Your practice has not hit its Leave Number yet (or has not done so consistently)
- You do not have at least one active system generating new patients
- You do not know what to say when a patient asks about price or pushes back
- You have less than 3 months of personal expenses saved
Fix these things first. Then quit your healthcare job for private practice from a position of strength.
Frequently Asked Questions
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Q: What if I never feel financially ready to quit my healthcare job for private practice?
A: If your practice has hit its Leave Number for 3 consecutive months and you have a 3-month runway saved — you are ready. The emotional readiness usually lags the financial reality.
Q: Should I quit my healthcare job for private practice if I still have student loans?
A: Student loans are part of your monthly living expenses. If your Leave Number accounts for them, the math still works.
Q: What about health insurance after I quit my healthcare job for private practice?
A: This is often the biggest overlooked cost. Research marketplace plan costs in your state and add that figure to your monthly living expenses before calculating your Leave Number.
Q: Is it okay to go part-time before I quit my healthcare job for private practice entirely?
A: For many providers, reducing to part-time while building the practice is an excellent middle step. It reduces pressure without forcing a full leap before you are ready.
You’re good at what you do. It’s time your business reflected that.
Kelly has helped 400+ healthcare providers go from inconsistent income to full-time practices averaging $30K/month. Book a free 20-minute strategy call.
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